Every few weeks it seems another developer announces its intentions to enter the build-to-rent market. But the self-storage market is also growing in popularity – and also offers the opportunity to build homes for rent.
Lambeth Council has received plans from Access Self Storage for a 108,000 sq ft facility within three underground levels along with 63 homes for the private rental market above ground on Streatham High Road.
The build-to-rent homes will be managed by Access itself. The plans supersede a consent granted in 2008 for a similarly sized storage facility above ground in a more traditional warehouse design.
Access, one of the largest self-storage companies in the UK, with 50 sites located mainly in the capital and the South East, has realised that self-storage facilities offer a good platform on which to provide homes.
Over the past few years the self-storage market has grown into an alternative asset class in its own right, prompted by the diminishing size of new homes. People sharing these homes to save on costs need to store their excess belongings, and turn to self-storage firms.
Access has a number of combined storage and residential sites in the pipeline, a few of which are in the design stages. Collado Collins is the architect.
Self-storage companies were the star performers among property’s listed sector last year, but in recent weeks share prices have dipped owing in part to softening demand and lower house prices.
Mike Prew, managing director and analyst at Jefferies, said: “Lower house prices lead to fewer transactions, less household disruption and less demand for temporary storage facilities.”
So Access is wise to squeeze more value from its portfolio by building homes for the rental market above self-storage facilities. Other operators that follow suit will help boost densities and alleviate the capital’s housing shortfall.
• To send feedback, e-mail paul.wellman@estatesgazette.com or tweet @paulwellman_eg or @estatesgazette
